The African National Congress Women’s League (ANCWL) has noted alarming reports that suggests that the South African Airways (SAA) is facing internal and external forces who are doing all within their powers to fight any attempts to transform SAA particularly on procurement and employment equity. This is done consciously to continue with only white owned suppliers being major beneficiaries of tenders at SAA. It is also a plan to ensure that only male occupies senior positions at SAA.
Amongst others, the reports suggest that:
– SAA spends over R10 billion per annum on Jet fuel. The suppliers for the fuel are allegedly five companies that have been solely supplying SAA with jet fuel for around 82yrs now.
– Bain & Company was the largest consultancy in SAA receiving a total of R208,9m handshake after selling the Airlines Fleet under the guise of turning the Arline around 15 years ago.
– Despite SAA having an approved turn around Strategy, currently government through National Treasury appointed Bain Capital, USA based company as a joint venture with South African based Abacus Advisory for a period of three years. This over R12 million contract is purported to be for the development of strategy and corporate structure.
– Former CEO of SAA Coleman Andrews who received a payment of R232,2million tax free during his two-and-half years at SAA failed to disclose to the Board of SAA during his appointment that he was a founding member of Bain & Company together with his wife.
– SAA is not flying to Florida in the USA but there are workers (ghost workers) in SAA books and call centre at Florida (USA). This also extend beyond Florida-USA but to various countries.
– Only 2% of the R24 billion of annual procurement spent is on black suppliers.
– For over 15yrs there are contracts that have been running on month to month basis and extension of contracts excludes incoming of any new suppliers.
– Ernest and Young report that uncovered corruption and irregular awarding of tenders is kept away from public domain and no action taken against all those who are fingered in the report.
– All aircrafts are being leased internationally with SAA having to pay exorbitant amounts.
– Tender for ticket sales is not being advertised but unilaterally awarded to companies in the main white owned companies.
– Retired and resigned pilots from SAA are allegedly still receiving SAA benefits even after being employed by other airlines. This is due to an evergreen agreement contract signed in the 90’s.
– Lack of employment equity:
- Of the 225 Senior Captains: 217 are white males, 4 black males and 4 white females.
- of the 116 Captains: 108 are white males, 3 black males, 2 coloured males,1 Indian male, 1 white female and 1 Indian female.
- Of the 288 Senior First Officers: 187 are white males, 22 black males, 21 Indian males,16 coloured males, 38 white females, 2 Indian females and 2 coloured females.
- Of the 130 First Officers: 43 are white males, 32 black males, 22 Indian males, 10 coloured males, 17 white females, 5 African females and 1 Indian female.
- Of the 18 Ground Managers: 10 are white males, 3 Indian males, 3 white females and 2 black females.
- Of 21 Pilot managers: 14 are white males, 5 black males, 1 coloured male, 1 Indian male, 3 white females and 2 black females.
The State Owned Companies (SoC’s) must be the champions of radical economic transformation and employment equity.ANCWL will persuade ANC led government to compel all SoC’s through legislation, to do business only with suppliers having more than 50% black women ownership.
ANCWL calls for the Judicial Commission of Inquiry or Parliament Inquiry to investigate various disturbing allegations of corruption and anti-transformation at SAA.
Statement as Issued by
Secretary General of the ANCWL
12 January 2017